New Zealand income tax rates 2025
New Zealand's income tax rates for the 2024–25 tax year (1 April 2024 to 31 March 2025) are:
- Up to $14,000: 10.5%
- $14,001–$48,000: 17.5%
- $48,001–$70,600: 30%
- $70,601–$180,000: 33%
- Over $180,000: 39%
New Zealand uses a progressive tax system — you pay the rate for each slice of income, not the top rate on your entire income. A person earning $75,000 does not pay 33% on all $75,000; they pay 10.5% on the first $14,000, 17.5% on the next $34,000, 30% on the next $22,600, and 33% on the remaining $400.
Worked example: $75,000 salary
- $14,000 × 10.5% = $1,470
- $34,000 × 17.5% = $5,950
- $22,600 × 30% = $6,780
- $4,400 × 33% = $1,452
- Total income tax = $15,652
- Effective (average) tax rate: 20.9%
ACC Earner Levy 2025
In addition to income tax, all employed New Zealanders pay the ACC Earner Levy — a contribution to the Accident Compensation Corporation that provides injury cover. For 2025, the earner levy rate is 1.67% per dollar earned, up to a maximum liable earnings threshold of $142,283.
On a $75,000 salary: ACC levy = $75,000 × 1.67% = $1,252.50 per year.
Maximum ACC levy per year (at the $142,283 threshold): $2,376.
KiwiSaver contributions
KiwiSaver is New Zealand's voluntary workplace retirement savings scheme. Employees can contribute 3%, 4%, 6%, 8%, or 10% of gross pay. Employers are required to match at least 3%.
On a $75,000 salary at the default 3% rate: you contribute $2,250/year, your employer contributes $2,250/year (less employer superannuation contribution tax). The government also contributes $521 per year (member tax credit) if you've contributed at least $1,042 during the year.
KiwiSaver contributions are deducted from your pay before income tax (on the employee side), so higher contribution rates reduce your taxable income and therefore your tax bill.
Student loan repayments
New Zealand Student Loan repayments are deducted automatically through the PAYE system at 12 cents per dollar earned above the repayment threshold of $22,828 per year ($439 per week) for the 2025 tax year. There is no interest on student loans for borrowers who live in New Zealand.
Working out your take-home pay
For a $75,000 salary with 3% KiwiSaver and no student loan:
- Gross salary: $75,000
- Income tax: -$15,652
- ACC Earner Levy: -$1,253
- KiwiSaver (employee 3%): -$2,250
- Net take-home pay: approximately $55,845/year or $4,654/month
The NZ Income Tax Calculator handles all of these deductions automatically and can model different KiwiSaver rates and student loan scenarios.
Secondary tax codes
If you have more than one job in New Zealand, you need to use a secondary tax code for your second (and subsequent) income sources. The secondary tax code (S, SH, or ST depending on your total income) ensures tax is withheld at the correct marginal rate across all income sources. Failing to use the correct secondary tax code typically results in a tax bill at the end of the year.